WKYT Investigates: Breaking down FCPS’ latest financial decisions

LEXINGTON, Ky. (WKYT) - The Fayette County Public Schools Board approved a balanced tentative budget as the district works to move past financial issues.

Board members raised several concerns about the budget during their meeting Wednesday night. Among them, the district’s contingency fund still falls below the board’s required 6% minimum.

“I know that we really don’t have any choice but to do this, so it’s very reluctantly that I think we have to address this,” said Amanda Ferguson, FCPS board member.

Board approves $95 million loan

In a 5-0 vote, the board approved borrowing $95 million to cover expenses. The board was initially set to consider a $110 million loan.

“It’s with a heavy vote to have to support this but it’s our responsibility to move forward in the right path and I feel like this is a step in that direction,” said Amy Green, vice chair of the FCPS board.

FCPS Interim Chief Financial Officer Kyna Koch told the board that under the advice of the district’s financial advisor, they will take all of the money at once, and whatever is not used will be invested.

“On a daily basis we’ll be watching cash flow. We will only take the money out of interest bearing accounts when we absolutely need it,” Koch said.

Koch said updates on how much money is used will be added to their monthly financial reports to the board.

Tentative budget approved

Wednesday night, the board also unanimously approved a $711 million general fund tentative budget for 2027. The entire budget, with a total of five funds, is just over $880 million.

“As we move through the peeling of the onion, the findings from the Weaver audit, the APA audit, it will most likely change moving into the working budget,” Green said.

The tentative budget is due to the Kentucky Department of Education by May 30. It includes an $11.4 million contingency fund. This meets the state’s 2% requirement for contingency funds, but not the school board’s 6% requirement.

Koch said she is not hopeful the contingency fund will be more than 2% for the 2027 budget.

“After we get 2025 restated and we close 2026, we will start working diligently on projections for the next 4 to 5 years. We just can’t do that right now because we don’t feel that we have reliable historical information,” Koch said.

PILOT agreements tabled

The board was also scheduled to consider whether to give two developers tax exemptions in exchange for larger payments. The developers want to use industrial revenue bonds to fund their projects. If they do, they will need to negotiate payments in lieu of taxes, or PILOTs, with the district.

The board decided to table the PILOT agreements and possibly revisit them in the future when they have more information.